Ryan: Many reasons for paying policy with single premium

1:23 AM,
Nov. 2, 2013

Written by

J. Brendan Ryan

Why would anyone want to pay more for their life insurance than they have to each year?

Actually, it happens quite frequently, especially in a single premium. This is the name given to the payment of one relatively large sum upfront with the hope - or on some cases the guarantee - that no more premiums will ever be required.

People do this for a variety of reasons. Some people just do not want to be bothered by ongoing premium payments. Others may be worried that, as they age, they may overlook the payments as they come due and may cause their policy to lapse for nonpayment. ...